Section 179 Info

Capital equipment can be some the largest expenses a company can incur. Luckily, U.S. based businesses have section 179 of the IRS code, which allows them to claim bonus deductions from newly acquired equipment.

If your equipment has a useful life of over one year it is possible to receive income tax benefits in just one tax year, versus spreading the cost of the equipment over the estimated useful life of the equipment. Additionally, Section 179 allows a small business to expense equipment and like purchases the same year that it is purchased.

This can mean that any machinery or equipment, furniture or fixtures, storage or structures that you finance, lease, or purchase for your business can be deducted within the very first year. While purchasing these items can be very expensive, leasing or financing these items for your business can be done easily with First Star Capital’s equipment financing and leasing programs.

Businesses are allowed to claim any value up to $400,000 on equipment purchases that are put into service for your business. Using section 179 in combination with financing or leasing your equipment purchases is an excellent way to ensure that you can get the equipment that your business needs, without incurring large capital expenditures.

First Star Capital is not an accounting firm. Please consult a professional accountant or certified CPA to explore how Section 179 can save your company money when it is time to upgrade or add operational equipment.